Economic Climate: Inflation: elevated but volatile Inflation is running around ~3.3% year-over-year, remaining above the Fed’s target. Energy prices—particularly oil—have been the primary driver of recent volatility. Core inflation continues to show stickiness, signaling underlying price pressures remain intact. Fed policy: holding steady, data-dependent The Federal Reserve is maintaining a “higher for longer” stance as […]
Waterstone Defeasance closed a defeasance transaction on a $95.7 million FreddieMac loan, secured by a multifamily property in Arlington, VA. Waterstone guided the owners through the defeasance process coinciding with the owners’ refinance of their property. “Apartment financing continues to drive the defeasance market, with lower cap rates despite higher interest rates, owners are executing […]
Economic Climate: Growth: U.S. economy is slowing but still expanding (~2%), with softer Q1 momentum driven by weaker consumption and external shocks. High-frequency data (retail sales, ISM) suggest demand is cooling, but resilient household balance sheets and services activity are preventing a sharper downturn. Inflation: Disinflation has stalled; core inflation is running ~2.7% with upside […]
Economic Climate: Growth has softened but remains positive Latest estimates show U.S. GDP growth slowed sharply at the end of 2025, expanded at a modest pace overall (about +2.2% for the year) after strong mid-year growth was weighed down by a prolonged government shutdown. Some projections for 2026 show growth around ~1.8%–2.4% — moderate rather […]
Waterstone Defeasance recently closed a defeasance transaction of an original $41.9 Million CMBS loan, secured by a Hotel in Traverse City, MI. Waterstone guided the owners through the defeasance process coinciding with the owners’ refiance of their loan. “Waterstone continues to deliver a high level of expertise for our clients, hotel properties continue to be […]
Economic Climate: U.S. economic growth remains moderate but positive, with forecasts suggesting real GDP expansion around or above trend in 2026 (e.g., around ~2.2–2.6% for the full year according to some forecasts). Strong recent growth in late 2025 (e.g., robust Q3 and Q4 figures) may carry momentum into early 2026, though this may not persist […]
Defeasance 2025 Year in Review: · Defeasance activity in 2025 occurred against a stressed CMBS backdrop, with overall delinquency rates remaining elevated above 7% for much of the year, limiting opportunistic loan payoffs and refinancing-driven defeasance. · Office and multifamily sectors exhibited heightened distress, with office delinquencies reaching record levels and multifamily delinquency rising to […]
Economic Climate: According to Vanguard, the U.S. economy has regained momentum after the end of the 43-day federal shutdown — they lift their 2025 growth estimate to about 1.9%. Third-quarter 2025 data suggests growth remained solid: private business investment and consumer demand held up relatively well, and many states saw income growth. Inflation has moderated […]
Waterstone Defeasance recently closed a defeasance transaction of an original $6 Million CMBS loan, secured by a Hotel in Oneonta, NY. Waterstone guided the owners through the defeasance process coinciding with the owners’ refiance of their loan. “Waterstone continues to deliver a high level of expertise for our clients, hotel properties continue to be the […]
Economic Climate: Moderate U.S. growth (~1.8 – 2.0%) — The economy is slowing but not contracting; consumer spending and services remain resilient while manufacturing and exports face headwinds. Inflation slightly sticky (~3%) — Price pressures have eased but not fully normalized; the Fed remains cautious, likely delaying aggressive rate cuts until inflation moves closer to […]